At the end of 2017, Campbell Company has total assets and liabilities at $42,000 and $11,000, respectively. Campbell reported net income for 2018 in the amount of $12,000. How much is shareholders' equity at the end of 2018?
A)$30,000
B)$22,000
C)$31,000
D)$43,000

Question

Quizplus · Accepted Answer

Shareholders' equity at the end of 2017 is calculated as total assets minus total liabilities, which is $42,000 - $11,000 = $31,000. The net income of $12,000 for 2018 would increase the shareholders' equity to $31,000 + $12,000 = $43,000 at the end of 2018.

At the End of 2017, Campbell Company Has Total Assets